Fiscal 2012 Konami Group Report

Transcription

1 Fiscal 2012 Konami Group Report April 1, 2011 March 31, 2012 KONAMI CORPORATION

2 To Our Shareholders Takuya Kozuki President and Representative Director I sincerely hope that this report finds our shareholders prospering and in good health. I was recently appointed as president and representative director of KONAMI CORPORATION. This year, KONAMI will mark its 40th anniversary since its establishment, and I feel a great sense of responsibility to have been selected as the new president at this important turning point. The Konami Group will do its utmost to achieve further growth and be a company that is highly regarded by society. At this point, the future course of business conditions in Japan remains unclear as a result of the influence of the Great East Japan Earthquake, the prolonged strength of the yen, and the monetary crises in Europe. Our ability to record continued steady growth in this operating environment is a result of the support we have received from all our stakeholders. As we move forward, we will endeavor to develop businesses not only in Japan but overseas. It is essential we aim to be the first to grasp emerging trends in global markets and lead the industry forward. In addition, providing Valuable Time to people around the world and helping people to live healthier lifestyles are important social missions for KONAMI. In the future, in the Group s fields of business Digital Entertainment, Health & Fitness, Gaming & Systems, and Pachinko & Pachinko Slot Machines we will constantly address changes in the operating environment and strive to manage the Group in a way that ensures sustained growth. On behalf of the Konami Group, I ask you, our valued shareholders, for your continued support and encouragement of our efforts. July

3 Four Pillars Supporting KONAMI Operations Digital Entertainment Segment Business Content We produce a wide range of products, including social content, computer and video games, amusement arcade video games, and card games. Health & Fitness Segment Business Content We operate fitness clubs in addition to designing, manufacturing, and selling fitness machines and health-related products. Gaming & Systems Segment Business Content We design, manufacture, sell, and service gaming machines and casino management systems in the globally expanding gaming market. Pachinko & Pachinko Slot Machines Segment Business Content We handle all business aspects related to pachinko and pachinko slot machines from research, design, and production to sales. 2

4 Topics Total Number of Registered Users for KONAMI Social Content Surpasses 20 Million Digital Entertainment By the end of March 2012, the total number of registered users amusement arcade video game. for KONAMI social content, which is available on social net- Also, we communicated the appeal and world settings of our working sites (SNS), had surpassed 20 million. In addition, game content through a variety of platforms and media, such as KONAMI had outstanding results at the GREE Platform Award manga serializations for SENGOKU COLLECTION and TV animation 2011, which was held in March DRAGON COLLECTION, broadcasts. Professional Baseball Dream Nine, CROWS WORST - Saikyou Through the continued provision of high-quality social Densetsu, and J. LEAGUE TM Dream Eleven had the distinction of games, the Konami Group will strive to offer the enjoyment of receiving awards. KONAMI content to even more customers while contributing to DRAGON COLLECTION, which won an award for the third time the sound development of the social content market. this year, has maintained tremendous popularity since its launch in September Leveraging the game management know-how that we have cultivated with these popular titles, we launched STAR WARS TM COLLECTION, based on the Star Wars TM movie series, and HUNTER CHRONICLE, which is linked with the STEEL CHRONICLE Konami Sports Club Undo-Juku ~ Aiming to Support Child Development through a Variety of Sports ~ Health & Fitness Konami Sports Club is developing the Undo-Juku as an afterschool club for children. Undo-Juku is divided into classes in accordance with the children s ages, physical strength, and capabilities. High-level guidance is provided by staff members with advanced training, and a wide-ranging lineup of classes, such as swimming, gymnastics, golf, tennis, soccer, baseball, dance, karate, and culture, has been well received. Besides the regular lessons, there are special classes offered by Kohei Uchimura and other members of the KONAMI Gymnastics Team, and there is a broad array of events to cultivate an interest in sports and motivate participants, such as nationwide tournaments in each field. Also, in March, at the JAPAN HIPHOP CHAMPIONSHIP 2012, the Star Team junior funk team, selected from KONAMI dance schools, came in second place in the junior division and first place for the second year in a row in the varsity division. In the future, KONAMI will strive to contribute to improving the athletic skills of children and promoting their sound growth through these types of programs. 3

5 Actively Exhibiting at Gaming Shows Around the World KONAMI actively exhibited at many gaming shows around the world and received positive reviews from large numbers of casino operators. Major Shows that KONAMI attended in the Second Half of Fiscal Global Gaming Expo (Las Vegas, Nevada, United States) SAGSE Buenos Aires (Buenos Aires, Argentina) International Casino Exhibition (London, United Kingdom) NSW Club Trade Expo (Gold Coast, Australia) Club Managers Association Australia Hospitality Expo (Sydney, Australia) Hospitality & Gaming Australasia (Brisbane, Australia) KONAMI products were well received at the Global Gaming Expo, the largest gaming industry trade show. These included KP3, our next-generation 3D slot machine platform, and new models with distinctive KONAMI entertainment value and game play, such as Advantage 3, which effectively uses lights and liquid crystal displays. Moreover, we actively exhibited at gaming trade shows in Gaming & Systems regions around the world, such as SAGSE Buenos Aires, in Latin America; the International Casino Exhibition, in Europe; and the Club Managers Association Australia Hospitality Expo in Australia. At these shows, we exhibited content that has been popular in North America in formats suitable for each local market. We also demonstrated the Konami Casino Management System. With the use of a network connection, this system makes it possible to manage, in real time, slot machine and customer information and to handle casino accounting management. Our exhibits were well received by local casino operators. In the future, KONAMI will continue to provide new entertainment and valuable time to customers around the world with gaming products that meet local market needs. Mesmerizing players with diverse dramatic appeal ~ Launch of Castlevania III pachinko slot machine ~ KONAMI launched Castlevania III, the latest entry in the popular pachinko slot machine series, in pachinko halls throughout Japan. Castlevania III has superb entertainment value, with attractive graphics and full-fledged music, recorded with the use of a chorus features that have been popular throughout the series. In addition, it has a new game system. With enhanced functionality and entertainment value, Castlevania III offers even more to captivate players. Pachinko & Pachinko Slot Machines Moreover, in cooperation with the mobile site e-slot, users can easily enjoy the display of results and the ability to customize music. Moving forward, KONAMI will continue striving to create pachinko slot machines that are even more enjoyable for customers. 4

6 Consolidated Financial Highlights (U.S. GAAP) Net Revenues Operating Income Net Income ( billion) ( billion) ( billion) (Fiscal years ended March 31) (Fiscal years ended March 31) (Fiscal years ended March 31) Consolidated Statements of Income (Key items) (Yen in millions) March 31, 2012 March 31, 2011 Net revenues 265, ,988 Consolidated Balance Sheets (Key items) (Yen in millions) March 31, 2012 March 31, 2011 Current assets 161, ,934 Fixed assets 166, ,957 Consolidated Statements of Cash Flows (Key items) (Yen in millions) March 31, 2012 Net cash provided by (used in) operating activities March 31, ,915 26,605 Operating income 40,950 20,791 Income before income taxes 40,026 19,082 Net income 23,012 12,934 Total assets 328, ,891 Current liabilities 67,890 63,155 Long-term liabilities 44,396 52,329 Equity 215, ,407 Total liabilities and equity 328, ,891 Net cash used in investing activities Net cash used in financing activities Cash and cash equivalents, end of period (7,646) (10,773) (13,254) (6,182) 76,451 59,541 Overview of the Fiscal Year In the Digital Entertainment Segment, we continued to record growth in the number of registered users for our social content, centered on DRAGON COLLECTION, SENGOKU COLLECTION, and Professional Baseball Dream Nine. In video game software, strong growth was recorded by our core titles, such as Winning Eleven (known as Pro Evolution Soccer in the United States and Europe). In the Health & Fitness Segment, we provided services to increasingly health-conscious customers. For example, in order to meet diversifying customer needs, we drew on our strengths to develop and introduce new services that utilize IT in exercise guidance, nutritional guidance, and health management for individuals. In the Gaming & Systems Segment, our sales including the Podium video slot machine and the Advantage 5 five-reel mechanical slot machine series were strong, especially in the U.S. market. In the Pachinko & Pachinko Slot Machines Segment, we delivered a solid performance. Unit shipments of MAGICAL HALLOWEEN 3 set a record high for the Group s pachinko slot machines, and the release of the GAMBARE GOEMON 2 and Castlevania III pachinko slot machines, which feature original KONAMI content, also resulted in record high sales. In terms of the consolidated results for the year ended March 31, 2012, net revenues amounted to 265,758 million (a year-on-year increase of 3.0%), operating income was 40,950 million (a year-on-year increase of 97.0%), income before income taxes and equity in net income of affiliated companies was 40,026 million (a year-on-year increase of 109.8%), and net income attributable to KONAMI CORPORATION was 23,012 million (a year-on-year increase of 77.9%). Including the interim dividend of 25 per share, the full-year dividend has been set at 50 per share. Operating income and net income attributable to KONAMI were new record highs for the Company. For more-detailed financial data, please visit the KONAMI website and look under the Financial Information page. 5 KONAMI IR Search

7 Hot News Four employees from the KONAMI Gymnastics and Swimming Teams will participate in the London Olympics, the pinnacle of international sports competition. Kohei Uchimura, Koji Yamamuro, and Yusuke Tanaka, from the KONAMI Gymnastics Team, and Takuro Fujii, from the KONAMI Swimming Team, have been chosen to compete at the London Olympics, which will be held in July. Kohei Uchimura, who last year became the first person to win the gold in the men s all-around competition for three consecutive years in the world championships, was highly evaluated by the Japan Gymnastic Association for his achievements and capabilities. Prior to the Olympic trials, held in April, he was chosen to represent Japan in the Olympics for the second time, following his participation in the Beijing Olympics. Koji Yamamuro and Yusuke Tanaka were selected to represent Japan at the Olympics based on their performances at the 51st NHK Cup, held on April 4 and 5, and at the 66th All Japan Artistic Gymnastics All Around Championships, held in April. The three KONAMI gymnasts are expected to compete in individual artistic gymnastics events and to strive for the gold medal in the team event. Takuro Fujii took first place in the 100m butterfly at Japan Swim 2012 / 30th Olympic swim team trials, which were held at the Tokyo Tatsumi International Swimming Center, and he was chosen to represent Japan at the London Olympics. This will be his second Olympics, following his participation in the Beijing Olympics. Moving forward, the Konami Group will continue to contribute to the wide range of customer health support activities undertaken by the KONAMI Sports Club and to the promotion and development of the Japanese sporting world through the nurturing of KONAMI athletes. Gymnastics Gymnastics Gymnastics Swimming Kohei Uchimura Koji Yamamuro Yusuke Tanaka Takuro Fujii 6

8 Corporate Data ( March 31, 2012) Company Name KONAMI CORPORATION Headquarters 9-7-2, Akasaka, Minato-ku, Tokyo , Japan TEL: FAX: Founded March 21, 1969 Incorporated March 19, 1973 Paid-in Capital 47,399 million Home Page URL Stock Information ( March 31, 2012) Common Stock Authorized: 450,000,000 shares Outstanding: 143,500,000 shares (including 4,879,848 treasury shares) Number of shareholders: 54,166 The 10 Largest Shareholders Shareholder s Name Shares (Thousands) % of Total Kozuki Foundation For Sports and Education 15, Kozuki Holding 15, The Master Trust Bank of Japan, Ltd. (Trust Account) 11, Japan Trustee Services Bank, Ltd. (Trust Account) 8, Kozuki Capital Corporation 7, Sumitomo Mitsui Banking Corporation 4, JPMorgan Securities Japan Co., Ltd. 2, Trust & Custody Services Bank, Ltd. (Securities Investment Trust Account) 2, State Street Bank and Trust Company 1, Mizuho Securities Co., Ltd. 1, Note: The above shareholding ratios are calculated after the deduction of treasury shares. Guide to Investor Relations Site Our website includes an investor relations section that provides easy access to our latest financial information, news releases, and other relevant IR information. URL: Shareholder Information Fiscal Year-End March 31 Ordinary General Meeting of Shareholders June Record Date for Shareholders Annual shareholders meeting: March 31 Year-end dividend: March 31 Interim dividend: September 30 Other (when necessary): As announced in advance Transfer Agent Sumitomo Mitsui Trust Bank, Limited 1-4-1, Marunouchi, Chiyoda-ku, Tokyo, Japan Location of Transfer Agent Handling Office Sumitomo Mitsui Trust Bank, Limited Stock Transfer Agency Department 4-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo, Japan Mailing Address Sumitomo Mitsui Trust Bank, Limited Stock Transfer Agency Department 4-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo , Japan Telephone Inquiries Internet URL Public Notices Shown on the Company s website Stock Exchange Listings Tokyo, New York, and London For ADR Holders Depositary and Transfer Agent for American Depositary Receipts: JPMorgan Chase Bank, N.A. 1 Chase Manhattan Plaza, Floor 58, New York, NY 10005, U.S.A. ADR Holder Contact: JPMorgan Service Center JPMorgan ADR Holder Transfer Services: Telephone Inquiries Toll-free U.S. & Canada Outside U.S Hearing impaired An automated IVR system is available 24 hours / 7 days a week. Representatives are available 8:00 am to 8:00 pm EST weekdays. Internet URL Visit and go to the Shareholder Services page. Mail for regular correspondence JPMorgan Chase Bank, N.A. P.O. Box 64504, St. Paul, MN , U.S.A KONAMI